TEHRAN - Iran’s top economic council has approved an emergency plan to increase daily crude oil production by 250,000 barrels, with 80 percent of the funding to be provided by the National Development Fund (NDF), the country’s sovereign wealth fund.

The decision, endorsed by the Leader of the Islamic Revolution Ayatollah Seyed Ali Khamenei and finalized by the Economic Council on July 13, authorizes the NDF to partner with the National Iranian Oil Company (NIOC) in implementing the production surge across selected oilfields.

Under the plan, a special-purpose vehicle (SPV) will be formed to oversee joint investment, with NDF as the financial backer and NIOC responsible for technical execution.

The targeted increase will raise Iran’s daily crude output from a baseline of around 1.94 million barrels to 2.19 million barrels.

The funding will be repaid through 50 percent of the revenues generated by the increased production.

The Central Bank of Iran (CBI) is tasked with managing the financial flow, based on production data provided by NIOC.

If NIOC fails to report in time, the Planning and Budget Organization may intervene to determine repayment obligations.

The Oil Ministry is permitted to shift up to 20 percent of investment or production targets among affiliated companies under the plan and to defer repayment flows if field production schedules change, provided investors still receive a 20 percent internal rate of return.

The plan is contingent on obtaining all environmental and civil defense permits.

The Environment Department has been instructed to fast-track approvals to facilitate implementation.

The Oil Ministry must submit quarterly progress reports to the Planning and Budget Organization, and both principal and interest owed to the NDF will be incorporated into future state budgets.

This approval replaces a previous directive from 2024 and revokes a separate resolution passed later that year.

EF/MA